Adult Residential Facilities (ARFs)
Hey you guys looking to buy a triplex in Southern California riverside county, instead of renting out the rooms to the public I’m looking towards renting to Adult Residential Facilities (ARFs). Is there anyone one BiggerPockets has ever done this???
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I am assuming an ARF is a independent/assisted living facility. if so, I have one tenant who rents two properties from me. One is a single family that he runs an independent living facility at. The other is a duplex with one side being independent living and the other side being assisted living.
You want to make sure that they have the appropriate insurance and also that you do also. You want to confirm that they have the necessary licensing with the county/state.
I think you should also seriously consider having a separate LLC for any property that you are doing this with just in case someone dies and the family feels that there was neglect involved.
I charge above market rent, tenant is responsible for all repairs and maintenance and the leases have built in rent increases. If they are a good operator I should have a forever tenant.